TUCSON (KVOA) - The city of Tucson is limiting the amount third-party food delivery services can charge local restaurants.
On October 6, The Mayor and City Council approved a 15% cap on fees charged by the delivery services such as DoorDash, UberEats and Grubhub.
"We're paying 30% right now through the apps and that basically covers our costs at this point so we're really not making much on that," said Richard Podgorski, General Manager of Lemon Shark Poke.
According to the city, the cap applies to restaurants with fewer than five Tucson locations while the restaurants deal with limits to dine-in service due to coronavirus restrictions.
Previously, the third-party delivery services could charge restaurants more than 30% of the purchase price to deliver the food.
"That just makes it unrealistic for them to be able to survive if somebody is offering a delivery service to them, which we want to support as well, but not at a confiscatory rate so they're effectively shutting the business down," said Steve Kozachik, Ward 6 councilman.
The city ordinance will go into effect on October 15th and will stay in effect until the declared COVID-19 public health emergency is over.
"I can already see us having a little bit more profit and that gives us the room to hire more people which also helps out Tucsonan's, it helps us get some updates on our equipment. It's a trickle effect, a domino effect, so it really helps us out immensely," said Podgorski.
The ordinance also bans the delivery of food from non-partnered restaurants. According to the city, this portion of the rule will go into effect on January, 1 2021.
To read the ordinance click here.